Fashion chain Esprit filed for bankruptcy on Wednesday for its European holding company based in Germany and six other companies. Esprit Europe GmbH is the parent company of Esprit in Germany, France, Belgium, Austria, the Scandinavian countries, Poland, Great Britain and Austria, where approximately 200 employees work in 17 locations.
“The aim is to restructure and reposition Esprit’s European operations, which are largely managed from Germany, for the future,” the company said. Discussions are already underway with a financial investor who has expressed interest in the trademark rights for Europe and wants to continue operational activities. Esprit had already filed for bankruptcy in Belgium and Switzerland in March.
The pandemic has hit the fashion chain hard
This is the second bankruptcy procedure for Esprit within four years. During the 2020 corona pandemic, the fashion chain had already sought refuge under the protective umbrella of insolvency law due to closed stores, dismissed about a third of its staff and closed 100 branches. There are still 1,500 employees working in the companies affected by the new bankruptcy.
Business operations will continue for the time being
Business operations will continue “until further notice”. The parent company Esprit Holdings is listed on the Hong Kong stock exchange, but the company’s focus is in Europe. Germany alone recently accounted for more than half of sales.
Esprit has brought on board as reorganisers, insolvency experts Christian Gerloff and Christian Stoffler, who have made a name for themselves in restructuring, especially in the fashion industry (Escada, Gerry Weber, Adler fashion stores).
Source: Krone
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